17 May 2016 – interim results

Interim results were dominated by a disappointing trading update which has seen expectations for the full year lowered, mainly as a result of difficult trading conditions in the Regeneration division.  There have been key changes at Lakehouse in the recent past and the company is no doubt keen to ensure that improved performance is delivered moving forwards.  It is not all doom and gloom, revenue was up 4% in the six months to 31 March 2016 and an interim dividend of 1.0p per share was declared, although profits fell and there is now a net debt position due to acquisitions.  On balance we believe a SPECULATIVE BUY rating is still appropriate.